In the

People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

, the Chengbao system () refers to the private or

individual An individual is one that exists as a distinct entity. Individuality (or self-hood) is the state or quality of living as an individual; particularly (in the case of humans) as a person unique from other people and possessing one's own needs or g ...

contracted operation of

public In public relations and communication science, publics are groups of individual people, and the public (a.k.a. the general public) is the totality of such groupings. This is a different concept to the sociology, sociological concept of the ''Öf ...

assets such as bus lines,

hospital A hospital is a healthcare institution providing patient treatment with specialized Medical Science, health science and auxiliary healthcare staff and medical equipment. The best-known type of hospital is the general hospital, which typically ...

s, and

school A school is the educational institution (and, in the case of in-person learning, the Educational architecture, building) designed to provide learning environments for the teaching of students, usually under the direction of teachers. Most co ...

s. These operators pay a fee as well as a percentage of

profit Profit may refer to: Business and law * Profit (accounting), the difference between the purchase price and the costs of bringing to market * Profit (economics), normal profit and economic profit * Profit (real property), a nonpossessory inter ...

generated to the state. It is regarded as a form of

intrapreneurship Intrapreneurship is the act of behaving like an entrepreneur while working within a large organization. Intrapreneurship is known as the practice of a corporate management style that integrates risk-taking and innovation approaches, as well as ...

History

The Chengbao system was first introduced during the

land reform Land reform (also known as agrarian reform) involves the changing of laws, regulations, or customs regarding land ownership, land use, and land transfers. The reforms may be initiated by governments, by interested groups, or by revolution. Lan ...

in China. In order to get around Maoist-era laws prohibiting land ownership, land was "chéng bāo" or contracted to the public, such as to individual peasants by the state. The system was quickly expanded to include many other assets. Today in China, many public assets and public service companies such as hospitals, schools and even auto companies are contracted out to private operators who operate it with a

profit motive In economics, the profit motive is the motivation of firms that operate so as to maximize their profits. Mainstream microeconomic theory posits that the ultimate goal of a business is "to make money" - not in the sense of increasing the firm ...

in mind but return operating expenses and profit to the government. This has the advantage of creating extra value to the contractor, generates funding for the state and public, and improves services for the consumer. Recently, "Chengbao" or contracting services has also been expanded to the private sector, where large privately owned enterprises allow individuals who aren't employees of the firm operate their assets.

References

Economy of China {{China-stub

History

See also

References